tv Bloomberg Markets European Close Bloomberg June 27, 2016 11:00am-12:01pm EDT
[laughter] david cameron: they gave fantastic speeches. i think he is right that the decision we're going to have to take, for the next government, about how we get the best possible access to the single market, i think that's going to be one of the single most important decisions of the government must take on. we must bear in mind the importance of safeguarding our economy, its trade links, it is jobs. that be very serious consideration. distress is read by those who voted remain on thursday is that they believe the country has turned its back on their values. does the primary this dust is the prime minister reassure that the tolerance that we supported within the european union will continue to be the hallmark of united kingdom as we seek a new role in the world? david cameron: i hope my honorable friend is right. that is when britain is in our
strongest, when we stand up for our values and work with others. we will still be full members of nato, the un security council, the commonwealth, the g7, the g-20. britain does best when make our voice heard through these organizations and we should continue to do so. >> harriet harman. harman: thank you, mr. speaker. i never thought i would see the day when i wish it to prime minister would win a vote, but last thursday, i did. and i think the country will pay a better price for the fact that he lost this one. leaving aside the constitutional turmoil, the damage to the economy, and the uncertainty that hangs over britain's place in the world, the leaders of the brexit campaign have engendered an atmosphere where some people believe it is open season now for racism. will the prime minister say very clearly that when it comes to the difficulties of getting a problems when it comes to
the difficulties of getting a job or problems in the nhs or housing or in schools, that it is the responsibility of his government to sort out not the fault of migrants from the eu or anywhere else? david cameron: i first of all praise the right honorable lady for her decision to cross party lines to make these argument. she is right that we must be very clear about our commitment to tolerance, diversity, and are complete intolerance of racism and hateful hate crime's that we have seen in recent days. ofnow that is the view honorable members in this house, whatever side of the debate they were on. that message needs to go out loud and clear. >> dr. julian lewis. dr. lewis: does the prime minister recall that when the of lastvoted september
year on the eu referendum bill, not a single conservative and only one labor board member voted against it? isn't it a bit late now for people to talk about blocking the implementation of the results just because they disagree with it? and finally, as it's always good to end on a positive note, would you care to bring in the votes for the -- before he leaves office? david cameron: i think it's very clear, when it comes in numbers, he wants for submarines and one referendum. i think i got a very clearly. unix a good point. one house voted on the referendum, it was by a margin of six to one to hold a referendum. planll be coming for the with all the other decisions that can be made during the remainder of this parliament recession. i would hope to include the one he mentioned. >> nick carter -- nick craig. koppelman's one
a successful coalition government. throughout that time, there were many things that he and i disagree on, but i always appreciated his civility, his good humor on display here again today, and his ability which is rare in politics to see politics from other people's points of view. my think all of those qualities in short the stability that was so necessary as the country was recovering from the economic shocks of 2008. for that, he should be warmly thanked. i have heard a lot about democratic principles. we agree with me that it surely cannot be right as a matter of democratic principle that only members of the conservative 0.03% of theuting total electorate should reveal the people who have a say to elect the new prime minister or a new government with new priorities utterly different to the ones he got elected on last year, could he agree with me that there should be an early general election? himd cameron: let me thank
for his kind words. we did work together, i think very successfully, and i know that he paid a very large personal and clinical price for the support he gave to the government, which i do think helped deliver economic civility and make real progress in our country. i thank him for that. what i would say about the leadership election that will not take place, and the other points he put -- it's best that all parties have their rules for elected leaders that are arrived at democratic league. we have ours, they will be followed. the only other point i would make is that in the coalition agreement, we agreed a fixed term parliament act, with which many of my colleagues had misgivings. i happen to think it is a good measure, and as a result, i think the right thing is for a new prime minister to take office and it will be for them to decide whether to fulfill the terms of this parliament or something else. grexit eric pickle. -- >> sir eric pickle. sir pickle: there are a lot of number of people it in my
district that work in the financial services industry. they've seen jobs leave this country, they're worried about their future. they need not to have access to the supermarket, the need to be able to be a part of the signal market. and so does this country as we currently have a 20 billion pounds surplus. will my honorable friend ensure that that is given the highest priority in the national interest in our negotiations? david cameron: he makes an important point. nothing changes in the uk's trading relations with europe until we actually leave the european union. there is a time when service companies, financial services maintain that passport and one of the most important tasks of the new government will be to negotiate the best possible arrangements with the signal market, and it will be debated endlessly in this house. there's a very strong case for trying to remain in that single market in some form, but that will be the decision for the
parliament. >> [indiscernible] >> as the process of leaving the european union unfolds, we will continue to face a large number of international challenges, the crisis in syria, climate change, and the threat of terrorism among them. and yet, we risk seeing our voice in the world diminished. does the prime minister agree that in negotiations, every effort should be made to ensure that we continue to have practical cooperation with our european allies, so that we can maintain the kind of influence in the world that is so important to our prosperity and our security? david cameron: we agree on this issue, and we spent some time on the campaign discussing it. what i would say is, it is important to use all of these forms to maximize britain's
influence, and we will have to find a way out of the new government to work out how to work with the european union to get the maximum effect for the -- stance ones climate change, how we prevent refugees leaving libya, and all the rest of it. those are the issues for future government. but i know from all that happened in the campaign is that this is not about britain's withdrawing from the world or playing less of a role in the world. we will have to work out the way forward. >> nicola blackwood. would add myood: i voice to the statesman who has made us proud and we will miss him. will the prime minister take this opportunity to reassure the science and innovation sectors of the government will fight to protect access not just to verizon 2020 funding, but also valuable research collaborations retention offfect the brightest and best of eu researchers?
they are essential to our knowledge economy and deserve to know they will be a priority in ongoing negotiations. david cameron: i think i ankorable friend -- i th my honorable friend. i think this issue of how we maintain the advances of british science and competitiveness of our universities will be one of the issues that this eu unit will want to look at very clearly. we've done very well with the european union. the new government can look at the evidence for that and how we can continue to move forward. >> i would like to commend the prime minister for the way he handled friday in his very, very diplomatic and kind speeches he has made today. i would ask him to continue to show that leadership over the next month or two, to ensure that some of the hysteria which has been around about what's going to happen to our country is actually kept under control.
could i ask him also to say today and to condemn very clearly those people who are almost implying that decent people all over this country who voted to leave the european union are somehow closet racists? david cameron: i've been on the opposite side to the honorable lady of this debate, but i know it takes a lot of courage to stand out in the way that she has. i reflect that one of my first jobs in politics was as the conservative candidates researcher in election. if i'd known then as you read part of my nemesis, maybe i would've worked even harder. she is right. there are many people on both sides of this debate who have very strong views about tolerance and diversity all the rest of it. we need to make sure that shines through in the coming days. >> mr. davis. mr. davis: as the prime mister knows, i have not always agree with him on issues, but as
equally knows, i've always been very supportive of him personally, and didn't want him to make the announcement that he did last week. that, will the prime minister agree with me that when he says the country needs to come together, and he is right to do so, to see except that the first part of that is that everyone has got to accept the result of the referendum, whether they like it or not? and that talk of a second referendum is for the birds? and when he goes to see his european counterparts, we pass on the message that with the british people have said is that we are very happy to continue with our 60 billion pound trade deficit with european union by trading with them, but in return for that, we are not prepared to accept free movement of people or contribute into the eu budget. must acceptn: we the results, and the cabinet has i think everyone should. what has to happen now is translating that result into action and choosing the correct
pathway to leave the european union and the correct relationship to have with it. that is going to take a lot of conflict decision-making by the new government, and he has a very clear view about what that should involve. it will involve a lot of separate and different decisions, but he is right, the decision must be accepted. >> mr. speaker, many of my constituents are european citizens, and they are fearful of their future. the prime minister has talked about a group of officials set up to determine what brings it will mean. can you give any comfort to these people, and if not now, can you give a timetable for when they will know how they can apply to remain in the u.k.? david cameron: i think there will be many people watching this with the same question that the honorable lady has asked. the technically correct answer is that while we are members of the european union, there is no change in the rights or the circumstances of people coming to live and work in britain, or britons going to live and work
in other in your -- european union countries. i would add that the lead campaign is fairly clear that they wanted to protect the rights of people who come to live and work and study, who are already here. robbie's that the final clarification of this and of the rights of british people living in other parts of the european union will have to wait for the complex negotiations. thank the premise of the opportunity to vote on this issue? prime ministers david cameron answering all sorts of question on britain's future relationship with the european union. let's go back to francine lacqua. theren good spirits, that is still a lot of unanswered questions. a few less than there were 24 hours ago. mark, what excellent point our viewers with the pound has been doing. -- david cameron
hit all the good points on unity. he wasn't worried about racism in this country, he says that was not the case. he also said they did have a contingency plan, and that there is a special unit that he has now put in place to deal with the eu. ofyou look at the reaction the pound to his speech, this is the first time that we hear from david cameron since he resigned on friday morning. i think they were looking for something more. maybe they want to know exactly whether this is legal. we seem to be focusing a lot on passport ring. they said today they want special access to the syntel market. this seems to me something that david cameron also intimated. we heard from brussels that day one, it's in our out. we are none the wiser on where the negotiations will go from here. i think the first point of call is that we need a new prime minister. we now know a little bit of the timeline they are waiting for, for people to put their name in
the hat as it were, wednesday and thursday. they hope to have someone in place from now until september. until then, he is asking for informal talks with various eu countries. we seem to understand once again from brussels that informal talks will not be on the table. francine, we will be checking in with you throughout the day. you can continue to watch that parliament recession with david cameron leading it. that's for now on life go on the bloomberg. mark: i'm going to rattle through e markets really quickly. by 4% on is down friday, it fell by 7%, the most since 2008. every industry group is falling today. easyjet, a big corporate story today. it joined iag, the parent of british airways in warning a drop off in travel demands following the brexit vote will pair earnings over the rest of the summer.
easyjet shares down by 23%. they were hammered on friday as well. sterling a two-day drop against the dollar is now 11%. it's the biggest two-day drop on record. we are at lowe's we have not seen since the middle of 1985. this is the yield differential between spain and germany today. it has come back from the levels we saw on friday. the levels we had not seen since 2014. that is because we had a surprising election result, the people's party got more of the vote than expected. it could be there is a government that will be put in place in a month, that's what he helps. the spread between the two following a less than inconclusive results than was expected is narrowing the spread between the 10 year in spain in the tenure in germany. at the low of the day during a parliament recession. with julie, markets
hyman. julie: stocks are near the lows of the session on day two of the u.k. vote. the s&p in the dow having the biggest back-to-back decline going back to august and the selloff we experienced. volume is up as well, 60% higher than the 20 day average for the s&p 500, specifically as this falls below 2000. we have a divergence as well between defensive encyclical groups today. take a look at the bloomberg. we now have both utilities and telecom stocks in the green. they tend to be the more economically resistant groups. groups likeical industrials, energy, tech, consumer discretionary, all trading deeply down today. you heard about ryanair from mark, you're seeing travel stocks in the u.s. fall as well, whether you're talking about airlines or cruise lines or online travel. we have steep declines for these stocks once again today. also, the investment banks.
anything in the financial industry is trading lower once again today. goldman sachs, down more than 20%, trading in a multiyear low. morgan stanley lower, schwab taking 7.5% hit. bond years -- bond yields are falling, the 10 year yield now 1.47%, less than 10 basis points away from a record low. the record low close is 1.39% back in 2012. we'll be watching this very closely as it goes down another nine basis points after falling i-19 basis points on friday. finally, utility stocks, one of the groups that is rallying here, up about one third of a percent in the past couple of sessions. the dow utilities average is at a record high, interestingly, as always every thing else goes down. vonnie: a little bit of a safe haven. julie, thank you. we're going to talk more about currencies. it's close to the intraday low as cameron speaks in a posture
that is jovial. it's just the tip of the iceberg, what about the euro? we speak with london, balentine, the pound reaction is likely to be from comments from the prime caretaking capacity in europe and england. is there more to go balentine -- is there more to go? valentin: we are still to see evidence of investors fromriating earnings portfolio investors pulling money out of u.k. property markets. the data has been suggesting that any of those lows of taken place at of the vote, presumably investors who believe until the very last spot that remain will
prevail. all of this is driving the pound lower still. the pound has been selling off for a while. we are seeing evidence of contagion spreading. it did hit the european currencies first, you mentioned the euro, the less liquid european currencies with the biggest losers. on the day, i think that other less liquid currencies like the australian dollar, the canadian dollar, seem to be getting hit. contagion from brexit is spreading. we will expect that will continue in coming days. mark: the euro is the big question. stirling is the obvious effect from brexit. is the euro the number two? there is speculation
with britain leaving, that will be centripetal forces in the eu which ultimately will break up the eu itself. if anything, eu officials will do the utmost to prevent any of that. there are two ways they can go now. the usual approach we have been seeing time and time again, the case in greece, the case in the aftermath of the european parliament elections not so long ago. the response was to stick together, signal and never closing union and hope that will work. but we are seeing this time around, given that britain is the second-largest eu economy an the fifth-largest world economy, piercing interesting comments from french officials calling for more flexibility, less intrusion by the eu. i don't what to expect from the eu summit tomorrow, but there is formats that may be all whereby the europeans will show greater unity in the face of
adversity may not be the answer. potentially there is only a chance for now they will show greater flexibility and try to address the issue by providing a more lasting, more sustainable solution. a more policy needed not just in the bank of england, but by the ecb and the bank of japan? is there more pressing urgency for it now, given the brexit vote? valentin: if anything, that has put more easing on the table. we expect more to come from the bank of england to coincide with the quarterly inflation report in august. to easepect the boj further at the end of july. if anything, the ecb is not that far away from further easing, especially if the political uncertainty we are seeing at the moment actually delays investment decisions, hiring decisions, ultimately means that the banks be less able to expand their loan books, to lend
further to the euro zone economy. as a result, all that triggers a negative demand shock and means the ecb will have to support the economy yet again. i would think that decision will come only after the summer. mark: the lack of urgent response would feed more panic. panic is here to stay. marinov, thank you. berlin, topo to european union's got today as the european union digest the shock. caroline hyde is there as angela with theirs counterparts. it seems like she is leaving it up to the u.k. as far as negotiating process, but she is the person who is going to take a softer approach. the rest of the european commission and council, maybe not so much. caroline: you are right.
idea of givingan them patients. she is the voice of pragmatism throughout these negotiations. she was speaking in the chancellery earlier, she was meeting the ukrainian leaders. she has been speaking to the fact that it is in the uk's power to determine when article 50 is triggered. the process in which the uk's are to leave the european union. she said there was a slight inck, she is having a carrot their time, the timing of all of this. but they're also saying informal negotiations can't start until they trigger that article 50. we spoke to her main chief of staff earlier today, who really talked about the need for patients. have a listen. there's an ongoing process of consideration inside the u.k.. elite, theal
institutions, governments, parliaments, are in the process of consideration on how to react, what to do as a consequence of the referendum. i believe that we should be patient. we should allow the necessary time for this consideration. caroline: time for consideration. that was the chief of staff randall a talking about the need for patien. potentially some were thinking they were rumor and that maybe they could have even a second brexit referendum. it seems when article a merkel wants to have is to give her time and allow them to realize that she has some sympathy if they do need till the end of the year. some eu officials saying they could have until the end of the year together houses in order in the united kingdom, get a new leader in the conservative party, and then trickle article
50 -- trigger article 50. , thank you.ne hyde five minutes away from the end of the monday session in the european equities indices. comesecline the stoxx 600 on top of a 7% decline on friday. the ftse down by 2.9%, it fell by 3% on friday. the dax down by 3.4%. thes show you more of equity benchmarks across europe today. we are seeing declines right across the board. the european close continues, we had to the break. here is a live shot of what's going on in parliaments. ♪
to the bloomberg live go function for continued coverage of that debate taking place in the house of commons. live from london and new york, this is the european close. mark barton and vonnie quinn is in new york. a lot of red today as there was on friday. finland down 8%. ireland down 9%. further declines in equities. further declines in currencies. sterling's decline continues. a two-day drop is the biggest ever. we are seeing moves in for free bond yields. the spanish third year is down by 21 basis points in light of the results. a number of commodities or falling today. this is the fear index. this is from 2011-2016.
earlier it was down by 5%, but we are a little up as of now. of august the highs 2015 as you can see. we are nowhere near the highs of 2011. that should be some comfort for you out there. the big day for you and the u.k. tenure. the expectations are the bank of england will cut interest rates next month. futures imply a probability of a cut at 50%. spain is roughly 1.5%. italy is roughly 1.5%. the u.k. has come below 1%. france is 30 basis points. the german 10 year yield is below that zero line. the only one of the big six that is negative. this is sort of barton's chart from friday. dice andlled your chose for assets, how would they have fared? i've chosen these four.
the yen has risen by 17% against the pound. gold is up 5%. the ftse 100 is down 5% and the stoxx 600 is down by 10%. a huge divergence among asset classes since friday. vonnie: depending on how much or little of a safe haven they are. in terms of the u.s. data, i have to mention the pound again because we were close to the lows of the day while cameron was speaking. right now, the pound is trading at 132.7. the treasury seeing money move and the curve is flattening with a spread of 88 basis points to between the two-year and 10 year in the u.s.. anda seeing money flowing 6.6866 toe yuan at the u.s. dollar. some strategist saying that there was intervention. we are looking at the major
averages -- not as bad as in britain. again a selloff continuing with the dow down 1.5%. the s&p staying below that 2000 mark. will it close below that level? that is the crucial question. the nasdaq down 2.4%. nasdaq, on the dat let's bring in abigail doolittle. abigail: after having the worst one-day slide since august 2011, we're looking at a sharp slide on the nasdaq today. nonetheless we are looking at the index is worse today slump since august last year. the biggest drag from a sector standpoint on the nasdaq is technology. microsoft, amazon, apple, and facebook -- from a percentage point, one of the worst performers. merrill lynch has downgraded the shares from neutral to a buy. they are citing brexit lows and summer blues.
the exposure to the cloud and the consumer for those companies, but as you can see they are all in the red. we are still looking at another broad-based a lot. standpoint, ski on today's weakness, technical damage has been done and we see this in the two-year chart with the nasdaq dropping below the key level that he calls 4700. he sees more near term downside with lows within a longer-term range. vonnie: thanks and we will check in with you later on. let's check in with the first word news. courtney has more from the newsroom. >> it is the first supreme court decision on abortion and almost a decade. the court struck down a texas law that threatened to shut down three quarters of the states clinics good the requirements for doctors and facilities were designed to protect patients,
the state said. opponents said they were and in restricted access to abortion. david cameron is rejecting calls for a do over vote on leaving the european union. cameron is setting up a new office to deal with the british exit and told the parliament that the economy is in for some turmoil. >> it is clear that markets are volatile. there are some companies considering their investments and this is far from plain sailing. we should take confidence from the fact that britain is ready to confront what the future holds for us from a position of strength. courtney: cameron says he will leave office in october once his replacement is chosen. in spain, voter surprised pollsters in the countries second general election in six months. the prime minister consolidated position as his party expected to lose seats in parliament but instead picked up more.
voters heard his call not to jeopardize spain's economic recovery. a singapore airline jet caught fire while landing in singapore today. the plane was returning after a flight to italy after an engine warning message. all messengers and crew on the 777 were evacuated safely. dayal news 24 hours a powered by journalist in more than 120 countries, i am courtney collins. vote to leave the eu is still sending shockwaves across the global market. the next guest says his main concern is that this is not a one and done in other countries may follow britain's lead. he is the head of multi-asset from usaa. you say this may not be a one and done event. rate for us the probability of whether more countries will agitate to leave the european union area or that integration
will actually get stronger after this. >> the agitation i think will continue from here on as the aftermath or the aftershocks of what happened on friday continue to unfold. the voices in the other countries such as italy and france, for example are asking for a similar type of vote. there is concern around that. we think that ultimately that those may not go through because the european union will try to put everybody's together and unite people and try to make it so that this type of referendum doesn't occur. vonnie: that is the open question. we are waiting for answers on that. in terms of u.s. assets than, the selloff has not been quite a strong as in europe and britain, in particular. what do you do? do you waited out? do you go to cash? wasif: we will continue to have
some volatility tied to it. our view is that this is not a lehman type of an event. this is more of a bearish term type of event. we have had something occur that is unprecedented. it was not expected by the markets as we all know. we are dealing with the repercussions of it. the recent volatility going into weeksor the coming and we do not want to take big bites out of the market, but we are nibbling at some. there are certain parts of the global market that are attractive on a valuation basis, such as emerging markets. they are still fraught with issues around global growth, but we still think that there is some opportunity they're going forward on a longer-term basis simply on the valuation and the fundamentals. europe, yes, it does have a lot of problems right now, but valuation wise, it is cheaper to the u.s. ,hen you look at the markets
equity markets, the u.s. market is the most rich and the one to be most cautious about right now. mark: give us an idea of how long this post brexit shakeout will last. i know it is one of the hardest questions out there, but give us an indication of the signs that we should be looking for that it is coming to an end. wasif: mark, i do not know about the time, but i do know that it depends on what type of reaction we get from the policymakers as well as the central bankers around how do we stave this off and keep this from he coming a further contingent. contagion. you are seeing some signs of contagion impact the currency markets. the idea is that if they can contain this to what is going on in europe and maybe provide some kind of support to or speed up the process in terms of how the economic impact would be occurring to a lot of the companies and the countries involved, that is going to be the issue.
it is not a time frame issue. it is more of what type of policies you see coming out of the politicians as well as the central banks that will determine if we go from what we think is that bear stearns issue to a much bigger issue. mark: what do you think about the fixed income space? we are seeing new lows -- u.k. year hasspanish ten had its biggest decline. within thecome european space, sovereign space, is it attractive on any level or not? wasif: fundamentally speaking, fixed income isn't attractive. however, it is a safe haven and that is what you are seeing yields continue to go lower despite them already being so low. the relative basis month u.s. bond market, especially the treasury market, when you compare it against the european market, is attractive for relative investors.
we are relative value investors as well. we have had an allocation to u.s. treasuries because of our cautionary stance on equities. that has really helped us go through this period in our portfolios. the relative difference in yields between the u.s. and european bonds will continue to have flows coming into the u.s. bond market for a lot of european and asian investors who are still searching for yields. that's still poses a very relative attractive proposition. vonnie: wasif, thanks for joining us. break,s we head to the here's another live shot of that debate taking place in parliament. much more on "bloomberg markets" right ahead. ♪ i'm moving on this as fast as we can. the process of getting your commissioner appointed includes hearings from the european parliament. ♪
vonnie: live from london and new york, i am vonnie quinn. mark: i am mark barton and this is the european close on "bloomberg markets." , where voterspain surprise the pollsters in the country second election in six months, delivering a victory to the veteran prime minister. ben sills is in madrid with the latest. it is a complicated situation in spain. how can you best some of the results? winner.oy was the big not have won by a enough to form the next government. now we enter another phase of negotiations.
vonnie: does he negotiate better with the right or what the left? ben: he needs to move toward the center. he is on the right of the political spectrum. he has the probe market people and then you have the socialists , who are the centerleft. those are the potential partners and they said they will not support rajoy. he needs to ramp up pressure for them to cave in. mark: how long is this going to take? ben: how long is a piece of string, mark? the main event we are waiting for is the first confidence vote of a new candidate for prime minister. at that point, the clock starts running and they have two months to form a government. if that fails, parliament is dissolved and we go to a third election. one that vote will come though is an open question. we will need to find somebody prepared to sit for it. vonnie: does brexit have any impact on this in the coming
weeks as they try to form a government? ben: i think brexit has already had its impact. , likeime minister's party the center-right establishment party, was set to lose seats. the anti-establishment group was set to overtake and the socialist would come second. those numbers went completely out the window when the numbers were counted. seats and we are seeing a big impact already from regular. brexit. mark: the economic backdrop is not too bad since the december election. the economy is one of europe's strongest. unemployment is creeping down, albeit at a lower rate. does spain's prospects remain as bright or brighter than its eurozone colleagues? ben: i think so. that is one of the embarrassments.
been's government has warning about the consequences of the political stalemate, but we have seen little impact of it. the economy is still growing at a cruising speed. unemployment is going down. it seems like the spanish government takes along just fine without politicians in control. mark: thanks, ben. ben sills in madrid. who needs a government? as we had to break, let's get a live shot of that debate in parliament. there is a government here, although there is a leader of the government. he will not be a leader for too much longer. david cameron is still addressing questions in the house of commons. more "bloomberg markets" ahead. ♪
york, i am vonnie quinn. mark: i am mark barton and this is the european close on "bloomberg markets." time for the bloomberg business flash, a look at the biggest business stories in the news right now. the british discount airline easyjet once the british exit vote will hurt earnings this summer. they say the decision to leave the eu will cost economic uncertainty and that means easyjet revenue will drop but a single digit percentage in the second half of its fiscal year. more fallout from the brexit vote, this time involving british employers. summer planning -- some are planning to freeze recruitment and may move operations outside the cap, according to a survey by business group. almost two thirds of businesses save brexit will be bad for business. brexit will prolong uncertainty in the city's housing market. the firm forecast lower revenue
and profits as a result. shares plunged to the lowest level since a night p.m. almost -- an ipo almost three years ago. that is the latest bloomberg's mis business flash. let's go to brussels where ryan is standing by with a special guest, richard ashworth. ryan: that's exactly right. he was a passionate member of the remain camp back in the u k. he is a big believer in the eu and has said one of the reasons why the u.k. has been a success going from the sick man of europe at the last 41 years to the world's fifth biggest economy, richard ashworth, thank you so much for joining us. i want to talk about the markets very briefly. the pound today reached a three decade low. you said that the u.k. started
as the sick man in europe for decades ago when it joined the european union. it has grown on the back of that. is what we are seeing today with the pound evidence that may be britain is getting what it deserves as a result of the decision? richard: i would not say that. we expected a shock and that is exactly what we expected. to everyone else i would say, look, relaxed, calm down. we need space and cool heads here. there will not be any brexit until we have a new prime minister and united kingdom. that will take until september. he or she will then have to go to the house of commons for authority to go to the european union and trigger the leaving process. that process takes two years. if we are going to leave the european union or whatever the relationship is, it will not be for two years and three months. that --t me just repeat if you're going to leave the european union. there is a question in your mind that there'll be an exit?
richard: it's a referendum and not a general election where you vote on a whole range of policies. this was a single issue and 48% of the public said we do not want that issue. to do so therefore and negotiate a relationship, they are going to need a new mandate. thehe u.k. elects to exit european union, which is what most people think is going to happen, does the u.k. have to lose access to the single market? ryan: the example out there is norway. markethas access to the and has agreed to accept the free movement of labor, for many people who voted in the referendum is a no go. richard: you are talking exit european union. there will be a change in the relationship, no doubt about that. i predict that we will be in the single market and i'm prepared to accept that we will still be cooperating. they're obviously to logical things like the environment, but there will be a degree of
local dissing it. disengagement. ryan: how long will it take to negotiate the exit? richard: from the minute the prime minister of our country goes to counsel and said i want to renegotiate, it is a two-year period as described in article 50. it will be 2018 before anything. ryan: if the u.k. exits the european union, your job goes away. how do you see the interim period of the next two years? are you a lame-duck? ryan: i do not see myself as a lame-duck. richard: i'm still an elected member of the parliament. i will continue to represent their interests as best as i can. johnson chooses to run and the internal party contest to become prime minister, will you support him? richard: that is far gone.
that is far from a foregone conclusion. ryan: would you support him given the fact that you are in the remain camp? richard: no, i would want to see who the runners are. i would not want to predict who they will be. is the parliamentary party selects two candidates that they will push to the wider general party. i will want to wait and see. ryan: donald trump the u.k. leaving the european union a great victory. we have got a global audience here. what do you say to that? richard: when i talk to the people who voted to leave the european union and i didn't to what their real message was, it is actually that they are fed up with the banking sector that let them down. it doesn't appear to represent them. they are set up with things like the european union, which looks like unelected, unaccountable bureaucrats running their lives. it's a strong message throughout the western world.
i see it just in north america just as i see it in britain. if you ask people in other countries, there was still be the same message. actually, we have to change the way we govern ourselves. ryan: they are not fed up with the european union itself? the point that they attached their venom too, but it could've been anything else. ryan: we are going to leave it right there. back to you. mark: breaking news -- nestle has named a new chief executive. paul volcker is to step down. he has been chief executive since april 2008. schnider will replace him as chief executive. he is the current chief executive of a german health care group. that is it for the european close. ♪
. scarlet: i'm scarlet fu and this is "bloomberg markets." a rally between european stocks deepening and falling to a deep decade low as the shocks of the british vote to leave the european union ripple through the markets. oliver: there will be a joint news conference in berlin that will likely set the tone for europe's response. scarlet: we are halfway through the u.s. trading day. european equities trading ended for the day. get acu catch up and glimpse from julie hyman. julie: they are hovering around the lows as well. we are not seeing any kind of rebound really in today's session when it comes to equities whether it is here in the united states or in the european session. the pound is also